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Trade and the Economy
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Originally posted by Mountain Man View Post
The ultimate weakness of violence is that it is a descending spiral begetting the very thing it seeks to destroy...returning violence for violence multiplies violence, adding deeper darkness to a night already devoid of stars. Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that. Martin Luther King
I would unite with anybody to do right and with nobody to do wrong. Frederick Douglas
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Like Wall Street Journal said,Originally posted by WSJChina Started the Trade War, Not Trump
Unlike with steel and aluminum tariffs, economists see merit in Trump’s trade case against China
https://www.wsj.com/articles/china-s...ump-1521797401
Originally posted by carpedIt seems to make sense to me that a trade war, if it actually starts, could have significant negative impact on the economy.Remember that you are dust and to dust you shall return.
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A couple of interesting stories that came across my "news feed" ()...
First up, here's one about Mexico saying they are considering closing a certain trade loophole that has allowed other countries to take advantage of NAFTA. Basically, here's how things have been working: Mexico got a sweetheart deal from the US in the form of NAFTA, so instead of other countries dealing with the US, they would make agreements with Mexico that would allow them to cheaply import their products into the US through Mexico under the NAFTA umbrella. This also gave US manufacturers an incentive to move operations to Mexico because they could import cheap raw materials from countries like China without incurring the penalties they would have had they been based in the US, and then importing their products into the US, again under the NAFTA umbrella. However, now that President Trump is in the process of vigorously renegotiating NAFTA, including tabling the option of dissolving the agreement entirely, Mexico is suddenly wanting to operate on more equitable terms.
Winning!
Next up: China is starting to sweat with growing concerns that they've underestimated President Trump.
In short, China is desperate to cut new trade deals with Europe to cushion the blow of President Trump's proposed tariffs, but Europe is telling them to take a hike.
WinningSome may call me foolish, and some may call me odd
But I'd rather be a fool in the eyes of man
Than a fool in the eyes of God
From "Fools Gold" by Petra
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Originally posted by carpedm9587 View PostOK - NOW you're getting somewhere. But the problem here is not "trade imbalance," it's "theft of intellectual property." That needs to be addressed, I absolutely agree.
Again - getting there, sort of. China is not a purely capitalistic society, and it is not a democracy. Naturally, if you have a juggernaut of a market (1.4T), and people wanting access to it, you're going to be bargaining from a position of strength. Why is that a surprise? And in a country that carefully controls so much, why is it a surprise that outside businesses are being required to work with and through inside businesses? And if companies want access to that market, they're going to have to adhere to Chinese policies. No one is forcing these businesses to work there. They can simply pull out and take their business elsewhere. China is not a "free market." Why do people continually expect it to be?"What has the Church gained if it is popular, but there is no conviction, no repentance, no power?" - A.W. Tozer
"... there are two parties in Washington, the stupid party and the evil party, who occasionally get together and do something both stupid and evil, and this is called bipartisanship." - Everett Dirksen
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Originally posted by Littlejoe View PostBut, from what I understand, foreign companies must have a Chinese partner and the foreigner can only own 49% of the company. When that happens, theft of intellectual property is actually legal from their standpoint...they own it now. ISTM that the only way to keep that from happening is to not open a business in China. I know I wouldn't.
You are absolutely correct, the only reason businesses go to China is an abundant and cheap labor force. The company I worked for before my current job was with case manufacturer. They made sewn bags and injection molded hard cases, foam inserts etc. They always made the prototypes that they sent to the prospective buyers in the factory here in Texas. When they got an order for it, they had it made at their Chinese factory. They lost a lot of repeat customers while I was there because of the difference in quality AND because of the time it took to get it done in China, shipped across the ocean and through customs. But, they made a fortune on the sales they did have. They had a manager here in the Texas factory who had the job of coordinating with the factory in China, and they always had a company rep in country trying to get the factory running more smoothly and to get quality up. They never did in the time I was there.
So I look at it this way. A trade imbalance can have two different components: a perfectly natural/expectable imbalance that is a function of the different resources/capabilities of the two countries; and imbalance due to anti-competitive practices on one side or the other. The former is not a problem. The latter is. Just screaming "trade imbalance" does not distinguish between those, and does not focus activity on the actual problems.The ultimate weakness of violence is that it is a descending spiral begetting the very thing it seeks to destroy...returning violence for violence multiplies violence, adding deeper darkness to a night already devoid of stars. Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that. Martin Luther King
I would unite with anybody to do right and with nobody to do wrong. Frederick Douglas
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